Background for Trainer
In cases of massive layoffs or downsizings, emotional upheaval is understandable, but even the termination of just one employee can have an emotional ripple effect. The best defense against stress is to have an idea of what to expect and a plan for dealing with it. Supervisors need to understand the reason for the dismissal and be comfortable that it's the right thing to do. They must be able to give the true reason to employee, be firm about it, and not get "off mission" in a way that could cause legal problems. Finally, they need to prepare for the emotional reaction to a termination, not just in the employee being let go, but in themselves and the employees who remain.
Regulations that Apply
Age Discrimination in Employment Act, Americans with Disabilities Act (ADA), Civil Rights Act Title VII, Civil Rights Act of 1991, Fair Labor Standards Act, Family and Medical Leave Act, Immigration Reform and Control Act, Jury System Improvement Act of 1978, National Labor Relations Act (NLRA), Occupational Safety and Health Act (OSHA), Pregnancy Discrimination Act, Rehabilitation Act of 1973, Uniformed Services Employment and Reemployment Rights Act, Vietnam Era Veterans Readjustment Act of 1974
Typical Legal Problems/Lawsuits
There are excellent legal reasons to reduce the stress termination causes. Courts may award dismissed employees damages for:
" Emotional distress
" Abusive discharge
" Outrageous conduct
" Negligent evaluation
" Defamation
Compliance Tips: When a dismissal is necessary make every effort to conduct it calmly, discreetly, and humanely.
Training Objectives for the Meeting
Trainees will be able to:
1. Prepare for a termination interview.
2. Conduct a termination interview in a way that reduces stress.
3. Know what details to follow up on after a termination.
4. Be aware of the range of emotional needs to expect in all parties after a termination and have some strategies to address them.
"Reducing Stress in the Termination Process"
Key Training Points
Training Exercise
Multiple Choice Quiz
1. For the company, termination is stressful because:
a) it's expensive
(b) it hurts morale
(c) it can be legally risky
(d) all of the above
2. For the employee, termination is stressful because:
(a) it means financial loss and disruption
(b) it represents personal failure
(c) it can jeopardize future employment
(d) all of the above
3. For supervisors, termination is stressful because:
(a) it's painful to give bad news
(b) legal risks and extra work are involved
(c) it may not be the right thing to do or solve the problem
(d) all of the above
There's no doubt that termination is stressful for "all of the reasons above," and many more. But there are ways to reduce most of these stresses, and that's what we'll look at in today's session.
I. Advanced Preparation
Before terminating an employee:
1. Consult with HR on the decision, legal issues, the process to follow, and materials to acquire. Materials and information you may need for the termination interview concern:
" Outplacement or other services--what services will continue and for how long?
" Perquisites (tuition aid, scholarship programs, financial or tax planning, etc.)--what will continue to be available and for how long?
" Statements to be provided within and outside the organization.
" References to be given to those who call.
" Compensation issues (salary owed, bonuses, severance, commissions, vacation, personal days, sick leave).
" Pension, savings, and insurance issues.
" Employment contract, if any.
" Releases or other paperwork that must be signed.
2. Tell your boss of the decision before breaking the news. You don't want the first report of it to come from an upset employee.
II. Immediate Preparation
1. Be clear and comfortable about the reason(s) for termination and be prepared with explanations and/or supporting evidence.
A. If termination is beyond the individual's fault or control
[Examples: Economic reasons (layoff, merger, corporate takeover), company reorganization (restructuring; downsizing; change in product, service or support technology that eliminates the job), personality clash--poor organizational match (often referred to as "wrong chemistry" or "not being a team player")]
" Explain why termination was the only choice.
" Explain how this individual was chosen for discharge (nature of position held, seniority, performance, potential, skills and value for the organization?).
B. If termination is for cause. [Examples: Poor performance, disciplinary infraction(s)]
" Explain company policy on the issue.
" Have documentation on the handling of the individual situation.
2. Choose the time. Friday is a common choice to avoid prolonging contact, but Monday allows employee to attend to business and get answers to questions. He or she may still choose to take the rest of the week off.
3. Choose the place. Your own office is private and where you are in charge. Some prefer a neutral site, though, so they can walk out and an angry employee can't refuse to leave.
4. Prepare your opening. If necessary, write it out and rehearse it.
5. Plan a sequence that suits the situation. For example:
A. When termination is not employee's fault:
1. Explain the situation bringing about the termination.
2. Explain what company has done to avoid the termination.
3. State that the decision has been to release the employee.
4. Express confidence in the employee.
5. Tell about benefits and assistance to be offered.
6. Allow employee to react.
7. Agree on next steps.
B. When termination is employee's fault:
1. State that the employee is terminated.
2. Give reasons.
3. If desired, focus on misfit between employee and job.
4. If desired, suggest employee has valuable traits useful elsewhere.
5. If desired, state confidence that employee will succeed elsewhere in other job.
6. Advise of benefits and assistance.
7. Allow for reaction.
8. Agree on next steps.
III. Tips for Handling the Interview
" Try to give the real reason. Being vague arouses suspicion. Attempts to soften the blow can come back to haunt the company. Don't give a reason you might need to contradict later on in court.
" Be calm, controlled, and respectful. Don't insult or belittle the employee. Avoid the temptation to make any generalizing remark, even if well intentioned (e.g., "People your age often think of it as early retirement"). These can be viewed as discriminatory.
" Calmly hear an angry or abusive employee out and do not respond in kind. After the outburst ask, "Are you through?" If employee persists, leave and call security if it seems necessary.
" Make clear that the decision is final and nonnegotiable.
" Make the terms specific as to the date when employment ends and any benefits to which the employee is entitled.
" Have a witness from a higher level of management.
" Keep the interview relatively short--30 minutes maximum.
IV. Aftermath
1. Make a written record of the meeting, signed by all present.
2. Gather needed materials and information from outgoing employee. These could include:
" Keys, ID cards, equipment, etc.
" Information on ongoing projects or operations, future commitments, etc.
" Final expense accounts, if any.
3. Remove employee's name from appropriate listings and end his/her access to computers, files, etc.
V. Emotional Protection and Healing
1. Be prepared for the "loss response." Expect the following feelings, not just in the person being discharged, but also in those remaining in the company and even in yourself.
" Denial and self-isolation. Employee wants to get away and think. "Survivors" are too stunned to react. Manager/supervisor feels reluctant to face people.
" Anger at others and the company. Supervisor may feel angry at having to do the "dirty work" or guilty that it's partly his/her fault.
" Bargaining. Employee may plead for help, another chance, further concessions. Survivors may feel if they work harder or avoid risks, it won't happen to them.
" Depression. Employee lacks energy/motivation for a job search. Survivors may become cynical and have low morale reflected in absenteeism or reduced productivity. Supervisor may question ability to motivate others.
" Acceptance. Discharged person gets on with life and seeks another job. Survivors form new relationships at work and refocus on current projects.
2. Take action to protect yourself and other employees
" Give the discharged person a chance to express emotion without responding emotionally yourself.
" Try not to take anger personally.
" Be available--don't go into hiding.
" Control/prevent rumors.
" Provide information. Have a plan or goal and communicate it to remaining employees.
" Have group meetings if necessary. If you need someone to talk to, seek help from a colleague or through HR.
" Stage ceremonial endings if necessary.
" Work on rebuilding the group (group projects, activities)
Training Exercise
Exercise 2
Hand out, "The Case of Leonard Perkins," and divide trainees into small groups. Instruct trainees to follow the second set of instructions, replaying the exit interview, planning and structuring it once as a "no fault" interview and once as a "for cause" interview (moving the date back to the end of the probationary period). Have them discuss which version seems more solid, effective, and comfortable to them as supervisors. Answer any questions that arise.
Wrap-Up
1. Recap: The key to reducing stress in the termination process is to know what to expect and to prepare for contingencies every step of the way.
" Answer final questions.
2. For Further Skill-Building
Prepare a termination interview using the sequence outlines provided on the handout and using either a case you are concerned with or one of the cases provided in this section. Write an opening statement and role play the session with another supervisor.
3. Final Feedback
" Hand out and collect instruction evaluations.
" Thank trainees for their participation.
Aerospace Casualty #1:
The Case of Leonard Perkins
The Supervisor's Side. Leonard Perkins used to work for Paul Rogers at a high technology manufacturing company until Paul left the state for another job. Leonard stayed on, but was layed off a year or so later and remained out of work for eight months. When the aerospace manufacturing company where Paul now worked started hiring to keep up with the ever-mounting demands of a military contract, he thought of Leonard and asked him to come interview for the position.
The interview went well and was cordial. When walking the candidate out to his car, Paul suggested Leonard look around the area carefully to acclimate himself. He mentioned that he himself had lived in a motel for six months before purchasing a house, but that he already felt very much at home there. Paul, who, like Leonard, was about 50, remarked that he thought the town was the kind of place he'd like to retire.
From the moment Paul formally offered the job, though, he found Leonard strangely anxious and eager. In fact, Paul actually learned from a local realtor that Leonard had decided to take the job even before the new hire had notified the company. Within two weeks, Leonard had already purchased a home.
The situation on the job, however, was just opposite. Leonard seemed very different since his period of unemployment. He took no initiative and no risks and acted downright panic-stricken every time he had to make a decision. Though the company was under intense pressure from an extremely tough customer, Leonard appeared to want only to keep a low profile and coast into retirement.
Paul started meeting with Leonard weekly to go over the goals of the week and ask him about his follow-up on each item. He kept careful records of the meetings. Leonard's performance, however, did not improve.
As the end of the 90 day probationary period approached, Paul told the HR Department that Leonard was not working out as a hire, was not responding to coaching, and should go before his probation lapsed. HR then told Paul that since they were about to lay off 250 employees (the result of a redesign in the project), it would probably be easiest just to include Leonard on the list of the 10% of the workforce being let go. They decided to base the layoffs in Paul's department on seniority within labor grade to make sure Leonard went. HR also advised Paul that on the out-processing form, he should check the box "Would rehire, given a situation suited to employee's abilities." The opinion was that that was a code other HR people would understand to mean there was a problem they weren't stating for legal reasons.
The layoff was scheduled for 2 PM on a Friday, pay day. It was also, coincidentally, two days after Leonard's probation period ended. His habit was to stop by the accounting office in the morning to pick up his check and deposit it during the work day--his privilege as a salaried employee. When he stopped by for the check, though, the accounting clerk couldn't find it. That was because the checks of all those who were being laid off had been pulled to be included in their out-processing packets at 2 PM.
On the advice of his superior, Paul told Leonard, who was agitated about the "lost check," the bad news about the layoff. In reference to the pulled check, he explained that Accounting had made a mistake: yes Leonard was being layed off, but only the checks of the hourly workers were supposed to have been pulled out of the normal Friday afternoon distribution. This seemed a minor detail in the face of losing a job.
The Employee's Side. Leonard sued the company and supervisor for unjust dismissal. He also filed a civil suit for age discrimination. His version of the events was as follows.
He'd been wooed from a state where he was perfectly happy with a promise of employment until retirement. Another former employee stated in the trial that in her opinion the supervisor either did know or should have known about the upcoming project design change that would eliminate the need for Leonard's services. That made the promise of long-term retirement still more deceptive. Further, the comment at the time of the misdirected check that "there was a mistake" meant that the company had made a mistake in hiring Leonard for a permanent position it really didn't have.
While not denying that the unusual weekly performance reviews took place, Leonard's attorney argued that the facts that Paul indicated he would rehire Leonard on the form and that Leonard had passed beyond his probationary period showed that performance was not a factor in the dismissal.
Finally, in suing for damages, Leonard's attorney had an expert witness testify that an engineer of Leonard's age was unlikely ever to find another job, especially in the economic climate of industry cut-backs.
INSTRUCTIONS:
Exercise 1 In small groups, play jury, decide the case, and share your findings and reasons with large group.
Exercise 2 In small groups, replay Paul's exit interview, planning and structuring it once as a "no fault" interview and once as a "for cause" interview (moving the date back to the end of the probationary period). Use the following models:
When termination is not employee's fault:
1. Explain the situation bringing about the termination.
2. Explain what company has done to avoid the termination.
3. State that the decision has been to release the employee.
4. Express confidence in the employee.
5. Tell about benefits and assistance to be offered.
6. Allow employee to react.
7. Agree on next steps.
When termination is employee's fault:
1. State that the employee is terminated.
2. Give reasons.
3. If desired, focus on misfit between employee and job.
4. If desired, suggest employee has valuable traits useful elsewhere.
5. If desired, state confidence that employee will succeed elsewhere in other job.
6. Advise of benefits and assistance.
7. Allow for reaction.
8. Agree on next steps.
Which version seems more solid, effective, and comfortable to you as supervisor? Discuss and debate your findings with the entire group.
One final note: the jury did rule in Leonard's favor and he was able to retire comfortably in his new home without having to work again.